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Recording a Bond Issue and Interest
Nora Corporation issued 8.5%, five year bonds with a face value of $8,000,000 on March 1, 2010, at 96. The semiannual interest payment dates are September 1 and March 1. Using the straight line method and ignoring year end accruals, , prepare journal entries for:
1) The issue of the bonds,
2) The first interest payment on September 1 and
3) The interest payment on March 1 2011.
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